Empire Metals Ltd (LON:EEE) has raised £2mln by way of an oversubscribed placing of shares with new and existing shareholders at a price of 3.25p.

The proceeds will be primarily used to exercise the company’s option to acquire a 75% interest in the high-grade Eclipse gold mining licence in Western Australia, to complete the work programme that has commenced there under the option, and to continue the company’s efforts to identify and secure additional assets.

“The support that we have received from new and existing shareholders in completing this placing is an endorsement of our confidence in the potential for significant high-grade gold resource development at the Eclipse gold project,” said Empire chief executive Mike Struthers.

“The results achieved to date from Eclipse have been very encouraging, with the latest set confirming that the mineralisation remains open at depth and along strike, with high-grade drill results along strike of existing historical workings confirming an extension to the main high-grade lode.”

Meanwhile, the company is continuing with the planned sale of the Bolnisi project in Georgia, and is currently in talks with a partner in regard to a right of first refusal clause.